Se Habla Espanol
Finding the right life insurance policy can mean providing your dependents with financial security in the event of your death. Associated Insurance Group of Indiana agents can discuss the different types of policies with you and help you choose one that will enable your family members to maintain their way of life after you are gone. One of the first considerations when choosing life insurance is how many people are dependent on you financially. You should determine what their potential major expenses will be and whether or not you will leave them with debts to be paid.
Associated Insurance Group of Indiana agent can help you learn the difference between the two major types of life insurance: term and permanent policies. Term life insurance pays a death benefit if you die within a certain time period. Term life insurance premiums are often lower which lets you buy a larger amount. Term life insurance is can be useful in covering debts like mortgages or car loans. However, the premiums increase the older you get. You may lose your coverage at the end of the term or it could just become too expensive to continue the policy.
Permanent life insurance, however, continues your entire life or until age 95 or 100. These policies can also build up cash value. You can borrow against the cash value of the policy or even withdraw the money if needed. Often a separate provision can be purchased which allows you to purchase more insurance without a medical exam. The premiums on these policies do not change. The age at which you purchase the policy can affect the premiums though.
Other factors can affect premiums as well including pre-existing medical conditions like cancer or heart disease. Tobacco use can be considered a poor health habit by the insurance company and be a cause for higher premiums as well. Your driving record and whether you have dangerous hobbies like skydiving or rock climbing could also raise premiums.
It is extremely important that you have a lengthy conversation with your insurance agent about the specifics of your policy and the needs of your dependents before you decide on a life insurance policy.